Payment of income tax

HI PROFESSIONAL COLLEAGUES

IN ONE OF MY CLIENTS CASE I HAVE A DOUBT REGARDING PAYMENT OF INCOME TAX. FOR THE A.Y.2009-10 SCRUTINY PROCEEDINGS COMPLETED. AT THE TIME OF FILING THE RETURN OF INCOME FOR A.Y.2009-10 LOSS CLAIMED WAS RS.128000/-. DURING THE SCRUTINY PROCEEDINGS THE ASSESSING OFFICER DISALLOWED SOME EXPENDITURE AND MAKE AN ADDITION OF RS.84000/-. SO FOR THE A.Y.2009-10 THERE IS NO ISSUE WITH REGARD TO TAX. BUT FOR THE A.Y.2010-11 THE LOSS OF RS.128000/- WAS CLAIMED FROM THE TAXABLE INCOME AND ON BALANCE INCOME TAX WAS PAID AGAINST THE TDS RECEIVABLE AMOUNT OF RS.120000/- AND CLAIMED REFUND OF RS.74000/-. THE REFUND CLAIMED WAS RECEIVED BY THE CLIENT IN THE MONTH OF APRIL 2011.

NOW THE ISSUE IS THAT THE AO IS ASKING TO REVISE THE RETURN FOR THE AY:2010-11. IF THE RETURN IS TO BE REVISED THEN IN SUCH A CASE LOSS TO BE SET OFF AGAINST THE TAXABLE INCOME IS RS.44000/-(128000-84000). CLIENT HAS TO PAY TAX ON DECLARED INCOME WHICH IS RS.152871 PLUS RS.84000/-(ADDITION MADE IN AY:2009-10) FOR THE AY:2010-11. IF TAX IS TO BE PAID THEN IN SUCH A CASE FROM WHICH DATE INTEREST IS TO BE CALCULATED AND UPTO WHAT DATE AND ON WHICH AMOUNT TAX IS TO BE CALCULATED.

I would like to clarify the situatin step by step otherwise it will confuse to either user:

1) In A.Y. 2009-10 AO made a addition of Rs. 84000/-. hence only balance will be carried forward for A.Y. 2010-11 i.e. Rs. 44000/- (Rs. 120000 - 84000)

2) If you have claimed Rs. 128000/- Loss in A.Y. 2010-11 than you have done wrong treatment and thus AO is correct. you can only claim Rs. 44000/- Loss

3) In any case if you have claimed Rs. 128000/- loss in A.y. 2010-11 Original Return than you have to file the Revised Return.

4) Calculate the Tax according to Revised Return and subtract it from Tax Already paid as per original return. Balance is your Tax payable.

5) I think you don't have to pay any interest on Tax. Just make the payment of Tax under the head ( 400 - Tax on Regular Assessment ) Dont pay as ( 300 - Self Assessment Tax )